You are here: Home > Steel News > Latest Steel News > Canada’s...

Canada’s Algoma Steel posts lower net income for Q2 amid high costs

Wednesday, 09 November 2022 12:28:39 (GMT+3)   |   Istanbul
       

Canada-based steel producer Algoma Steel has announced its financial and operations results for the second quarter and the first half ended September 30, 2022, of the fiscal year 2022-23. 

In the second quarter, the company registered a net income of CDN $87.2 million, compared to CDN $288.2 million in the same period last year due to a decrease in the selling price of steel and an increase in costs, while its revenues totaled CDN$599.2 million, compared to CDN$1.01 billion in the second quarter last year. 

In the first half, Algoma Steel registered a net income of CDN$388.7 million, down by 21 percent, while its revenues amounted to CDN$1.53 billion, decreasing by 14.7 percent, both year on year. 

The company’s shipments in the second quarter totaled 435,202 mt, down by 25.9 percent from 587,340 mt recorded in the same period last year. The decline in shipments was largely attributable to previously disclosed plate mill modernization commissioning delays and production shortfalls at the company’s direct strip production complex. 

In November last year, the company decided to construct two new state-of-the-art electric arc furnaces to replace its existing blast furnace and basic oxygen steelmaking operations, as SteelOrbis previously reported. The project is expected to take two years to complete and is advancing as planned. Following the transformation to EAF steelmaking, Algoma’s plant is anticipated to have an annual raw steel production capacity of approximately 3.7 million mt, with the company’s annual carbon emissions reduced by approximately 70 percent.


Similar articles

Japanese crude steel output up 4.6 percent in October from September

21 Nov | Steel News

Ukraine’s Metinvest records higher crude steel and pig iron output in Jan-Sept

20 Nov | Steel News

Federacciai reports upturn in Italy’s crude steel output in October

19 Nov | Steel News

US raw steel production is down 1.6 percent week-on-week

19 Nov | Steel News

Russia’s Mechel posts lower crude steel and pig iron output for Jan-Sept

15 Nov | Steel News

China’s crude steel output up 6.24 percent in Oct from Sept

15 Nov | Steel News

CISA mills’ daily steel output up 0.1% in early November, stocks also up

14 Nov | Steel News

US raw steel production is up 1.2 percent week-on-week

13 Nov | Steel News

Germany’s Salzgitter reports net loss for January-September

12 Nov | Steel News

Ukraine sees 21.9 percent rise in pig iron output in January-October

12 Nov | Steel News